From April 2026 tax advisers will have to register with HMRC in a bid to crack down on 'incompetent' practitioners.
The Treasury received almost 250 responses to its consultation: Raising standards in the tax advice market - strengthening the regulatory framework and improving registration.
It opened in March with the aim of weeding out "incompetent, unprofessional or unscrupulous practitioners who continue to operate, harming their clients and the public finances".
It said consultation respondents were "strongly in favour" of the proposal to mandate the registration of tax advisers who wish to interact with HM Revenue and Customs on behalf of their clients.
The government will now invest in modernising HMRC’s tax adviser registration services and from April 2026, all tax advisers who interact with HMRC on behalf of a client will have to register with the government department before doing so.
The consultation outcome added: "Responses to the consultation were generally supportive of further government intervention in the tax advice market in order to raise standards.
"However, responses varied when it came to the exact action which should be taken.
"The government will take on board the opinions and concerns shared in this consultation and will continue to work closely with the sector to consider options to strengthen the regulatory framework for tax advisers."
It added the government will also consult on measures to enhance HMRC’s ability to act against tax advisers, when they facilitate a taxpayer’s non-compliance.
HMRC will also introduce a requirement for tax advisers to obtain an advanced electronic signature from their client if they wish to submit an income tax repayment claim on their behalf.
tara.o'connor@ft.com
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